Courtesy of Mish.
In what may become a historic “Emperor Has No Clothes” moment, the euro, stocks, oil, and European government bonds all quickly reversed course following initial euphoria of a Spanish bank bailout that is sure to do more harm than good.
For details of the bailout please see Rajoy Proclaims “Victory”, Says It’s Not a Bailout “It’s a Credit Line”; Existing Bondholders Subordinated
S&P 500 Futures 5-Minute Chart
Notice the ramp late Friday. Someone knew before the announcement, this bailout was coming. Official news did not come out until Saturday.
The market gapped up this morning on the news, and those who bought on Friday likely dumped at the open.
Not only was the initial Monday morning gap up taken back, the late-day ramp job on Friday went down the drain as well.
Subordinated Bondholders…
